Commodities Watch for This Past Week

From Prudent Bear. This is the only useful segment of a much larger article.

"Commodities and Food Watch:

February 3 – Bloomberg (Tony C. Dreibus): “World food prices rose to a record in January on higher dairy, sugar and cereal costs and probably will remain elevated, the United Nations said. An index of 55 food commodities climbed 3.4% from December to 231 points, the seventh straight increase… Dairy prices led advances among five food categories, rising 6.2%...”

February 4 – Bloomberg (Phoebe Sedgman): “New Zealand wool prices may surge as much as 25% in the next two years as China, the biggest buyer, boosts stockpiles on expectations supply will remain crimped, according to a wool broking group. Crossbred wool prices, which have more than doubled since July 2009, reached about NZ$5.60 ($4.33) a kilogram at auction yesterday in Christchurch…” "

Great--now China is switching to wool because they hoarded all the cotton they could. My advice? Whatever's rising, DON'T USE IT. You can help collapse demand, and eventually traders will look elsewhere for profits (once they figure out they're only feeding off each other's demand).

If you must buy cotton, buy second-hand if you can get it. As for food, you know my solution.